US Dollar Index
After rising for two consecutive trading weeks, the US Dollar Index started this week on a stronger note. Maintaining the strength, the US Dollar Index started strong on Tuesday and traded above the opening prices in the early hours.
The US Dollar Index started to recover from the second week of September as concerns about Hurricane Harvey and Hurricane Irma cooled down. Additional strength was added last week due to the hawkish tone of the Fed’s statement. The Fed’s statement increased the chances of one more interest rate hike in 2017. Despite the dent in the market sentiment amid fresh North Korea concerns, the US Dollar Index is strong in the early hours on Tuesday and trading at the highest levels in a month. The market is looking forward to the release of consumer confidence data and new home sales data at 10:00 AM EST today.
At 6:35 AM EST on September 26, the US Dollar Index was trading at 92.94—a gain of 0.32%.
US Treasury yields
After rising for two weeks amid the improved global sentiment and hawkish Fed, US Treasury yields pulled back on Monday. There are concerns about North Korea, Germany’s mixed election results, and an increased demand for bonds, which weighed on Treasury yields. Treasury yields move against the bonds. The market is looking forward to Fed Chair Janet Yellen’s speech “Inflation, Uncertainty, and Monetary Policy” at 12:45 PM EST today.
Movement in Treasury yields
The movement in Treasury yields at 6:45 AM EST on September 26 was:
- The ten-year Treasury yield was trading at 2.222—a gain of ~0.07%.
- The 30-year Treasury yield was trading at 2.763—a gain of ~0.14%.
- The five-year Treasury yield was trading at 1.845—a gain of ~0.48%.
- The two-year Treasury yield was trading at 1.432—a gain of ~0.32%.
The iShares 20+ Year Treasury Bond ETF (TLT) fell 1.9%. The ProShares UltraPro Short 20+ Year Treasury ETF (TTT) rose 0.63%, while the ProShares UltraShort 20+ Year Treasury ETF (TBT) fell 1.3% on September 25.
In the next part, we’ll discuss how commodities performed in the early hours on September 26.